Tech Giants Power S&P 500 Amid Fed Concerns

The S&P 500 saw an uptick on Tuesday, bolstered by Nvidia and Eli Lilly. However, the firing of Fed Governor Lisa Cook by President Trump sparked concerns about the Federal Reserve's independence. Nvidia's upcoming report could influence Wall Street's AI stock rally. Interest rate cuts remain anticipated despite political uncertainties.

The S&P 500 experienced a slight rise on Tuesday, largely driven by Nvidia and Eli Lilly. Despite this uplift, President Donald Trump's decision to dismiss Fed Governor Lisa Cook ignited worries over the Federal Reserve's independence, casting a shadow over the financial markets.

Investors are keenly awaiting Nvidia's quarterly report, which is anticipated to shed light on the company's performance amid the ongoing trade tensions between Washington and Beijing. The chipmaker's results could either propel or hinder Wall Street's current rally in AI-related stocks.

Meanwhile, interest rate cut expectations persist, with traders eager for more accommodative monetary policy from the Fed in September. The Dow Jones, Nasdaq, and S&P 500 all posted modest gains, while sectors like energy and consumer staples saw declines.

(With inputs from agencies.)